CBZ posts 300% jump in net profit

ZIMBABWE’S largest financial services group CBZ Holdings Limited recorded a 301% increase in profit-after-tax to ZWL$137,4 million in the six months ended June 30, 2019 from a comparative 2018 of ZWL$34,3 million, due to strong performance by its subsidiaries.

BY MISHMA CHAKANYUKA

In a statement accompanying the bank’s financial results, chairman Noah Matimba said total income improved to ZWL$253,5 million from ZWL$93,2 million recorded in the prior year.

Following the introduction of the local currency, there were some changes in accounting which have been reflected in the bank’s financial statement.

CBZ’s net interest income marginally increased to ZWL$47,9 million from ZWL$40,8 million posted in 2018, while net non-interest income also increased to ZWL$199,1 million from ZWL$47,7 million recorded in the same period last year.

During the period under review, the bank’s total deposits went up 25% to ZWL$2,69 billion from a comparative 2018 of ZWL$2,15 billion.

Total assets increased to ZWL$3,7 billion from ZWL$2,5 billion recorded in the same period last year whereas total liabilities stood at ZWL$2,8 billion a 33% increase from ZWL$2,1 billion reported in the previous year.

Loans and advances to customers amounted to ZWL$108,2 million, an increase from ZWL$22,8 million posted in 2018. The bank’s cash and cash equivalents decreased to ZWL$891 677 compared to ZWL$1,34 million recorded in the same period last year.

CBZ Holdings has business subsidiaries which include insurance, asset management, property investment and mortgage finance. In its property and equipment division, properties were revalued and tested for impairment on an open market.

The rental income derived from investment properties during the period under review amounted to ZWL$1,3 million, an increase from the 2018 figure of ZWL$669 369 while direct operating expenses decreased to ZWL$111 921 from ZWL$253 528 recorded in the prior year.

Strong performance by the group’s various divisions came about as the insurance arm realised a net profit of ZWL$21,2 million from ZWL$2 million in the prior year, its asset management subsidiary also posted ZWL$1,4 million profit after tax from ZWL$494 000.

CBZ bank’s profit-after-tax amounted to ZWL$205,07 million from ZWL$158,44 million achieved in 2018.

The bank expects the operating environment to remain challenging with government introducing more policy changes in the near term.

“The government has committed to completing the Transitional Stabilisation Programme and as such it is expected that there will be more interventions and policy changes as the economy continues to undergo change,” Matimba said.

“The CBZ group remains financially and technically well prepared and positioned to pursue current and emerging business opportunities, while at the same time managing the attendant business risks and threats.”

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